{"product_id":"hedge-fund-analysis-isbn-9781118175460","title":"Hedge Fund Analysis","description":"\u003cb\u003eA detailed, step-by-step book covering the entire hedge fund evaluation process\u003c\/b\u003e  \u003cp\u003eInvesting in hedge funds is different from investing in other asset classes. There is much less publicly available information about hedge funds performance than there is about mutual funds or individual stocks. Consequently, investing in this class requires more sophisticated investment knowledge, greater due diligence, and, in many cases, a better-developed ability to evaluate investment managers.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eHedge Fund Analysis\u003c\/i\u003e provides a broad framework of how to approach this endeavor, from initial screening to analytical techniques, interviewing skills, and legal and contract negotiations. Along the way, it demonstrates a variety of mechanisms for monitoring and tracking hedge funds and the underlying hedge fund portfolios—explaining each stage of the process in minute detail and providing specific examples which fully explain the opportunities and challenges you'll face each step of the way.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eProvides a detailed look at how to source hedge funds, screen through them, and rank their strengths and weaknesses\u003c\/li\u003e \u003cli\u003eLays out a thorough process for evaluating funds, from initial interviews to performance analysis to onsite meetings\u003c\/li\u003e \u003cli\u003eReveals what questions to ask by strategy in order to understand the underlying risk factors associated with each\u003c\/li\u003e \u003cli\u003eHighlights non-investment analysis, including operational due diligence and risk management, as integral elements in the process\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWritten by a financial professional with over twenty years of experience conducting investment manager due diligence, this book will put you in a position to make more informed decisions when investing in hedge funds.\u003c\/p\u003e \u003cp\u003eIntroduction xi\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART ONE Background\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 Hedge Fund History 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSo Who Invented the Hedge Fund? 4\u003c\/p\u003e \u003cp\u003eThe Samurai 4\u003c\/p\u003e \u003cp\u003eThe Academic 5\u003c\/p\u003e \u003cp\u003eThe Legend 14\u003c\/p\u003e \u003cp\u003eThe Innovator 17\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Hedge Fund Asset Class 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefinition 29\u003c\/p\u003e \u003cp\u003eHedge Fund Structure 31\u003c\/p\u003e \u003cp\u003eHedge Fund Strategies 32\u003c\/p\u003e \u003cp\u003eAdvantages of Allocating to Hedge Funds 43\u003c\/p\u003e \u003cp\u003eHedge Fund Size and Age Impacts Performance 52\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART TWO Hedge Fund Due Diligence\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Due Diligence Process 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey Areas of Focus within Each Component of Due Diligence 57\u003c\/p\u003e \u003cp\u003eThe Due Diligence Process Highlighted in This Book 60\u003c\/p\u003e \u003cp\u003ePutting It All Together 67\u003c\/p\u003e \u003cp\u003eSome Initial Thoughts 70\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Initial Data Collection 77\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eData Collection 78\u003c\/p\u003e \u003cp\u003eDue Diligence Questionnaire (DDQ) 80\u003c\/p\u003e \u003cp\u003eFictional Capital Management 80\u003c\/p\u003e \u003cp\u003eOther Materials 106\u003c\/p\u003e \u003cp\u003eFurther Analysis 108\u003c\/p\u003e \u003cp\u003e13F Analysis 116\u003c\/p\u003e \u003cp\u003eHedge Fund Journal 119\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 Initial Interview 121\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInitial Call or Meeting 121\u003c\/p\u003e \u003cp\u003ePhone Interviews 122\u003c\/p\u003e \u003cp\u003eMeeting Notes 139\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Quantitative Analysis 145\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePerformance Measures 146\u003c\/p\u003e \u003cp\u003eAbsolute Return Measures 146\u003c\/p\u003e \u003cp\u003eAbsolute Risk Measures 154\u003c\/p\u003e \u003cp\u003eRegression-Based Statistics 164\u003c\/p\u003e \u003cp\u003ePeer Group Analysis 168\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Portfolio Analysis 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAttribution Analysis 174\u003c\/p\u003e \u003cp\u003eFundamental Analysis 189\u003c\/p\u003e \u003cp\u003eEvaluating Portfolio Data 193\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 Onsite Interviews 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOnsite Meeting Strategies 219\u003c\/p\u003e \u003cp\u003eOne-on-One Meetings 219\u003c\/p\u003e \u003cp\u003eMeeting with More Than One Person 222\u003c\/p\u003e \u003cp\u003eDifferent Perspectives 223\u003c\/p\u003e \u003cp\u003eMeeting Notes 224\u003c\/p\u003e \u003cp\u003eOnsite Interviews at Fictional Capital Management (FCM) 228\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 Operational Due Diligence 259\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCase Study: Bayou Fund 259\u003c\/p\u003e \u003cp\u003eDefinition 261\u003c\/p\u003e \u003cp\u003eImportance of Operational Due Diligence 263\u003c\/p\u003e \u003cp\u003eCategorization of Operational Due Diligence 267\u003c\/p\u003e \u003cp\u003eInterview with FCM Operational Staff 301\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10 Risk Due Diligence 309\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGraphical Depiction of Hedge Fund Risks 312\u003c\/p\u003e \u003cp\u003eRisk Due Diligence 314\u003c\/p\u003e \u003cp\u003eFactor Decomposition Analysis 330\u003c\/p\u003e \u003cp\u003eInterview with FCM Risk Manager 333\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11 Reference and Background Checks 339\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOnlist and Offlist References 340\u003c\/p\u003e \u003cp\u003eInternet and Social Media 341\u003c\/p\u003e \u003cp\u003eContacting References 343\u003c\/p\u003e \u003cp\u003eProblematic References 346\u003c\/p\u003e \u003cp\u003eWhose References Should You Check? 349\u003c\/p\u003e \u003cp\u003eHow Many Reference Calls Are Enough? 350\u003c\/p\u003e \u003cp\u003eBackground Checks 352\u003c\/p\u003e \u003cp\u003eSummary of Reference Calls for FCM 353\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12 Hedge Fund Scoring Model and Decision Making 357\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHedge Fund Scoring Model 358\u003c\/p\u003e \u003cp\u003ePutting It All Together 374\u003c\/p\u003e \u003cp\u003eAbout the Author 379\u003c\/p\u003e \u003cp\u003eIndex 381\u003c\/p\u003e \t \u003cp\u003e\u003cb\u003eFRANK J. TRAVERS, CFA,\u003c\/b\u003e is a portfolio manager at Larch Lane Advisors. He has over two decades of experience analyzing traditional long-only, private equity, and hedge fund strategies. Previously, he was the director of research at First Peninsula Capital and a portfolio manager at Pine Street Advisors and CIC Group. Additionally, he held positions as the director of due diligence at CIBC World Markets, associate director of international equity research at Evaluation Associates, and senior analyst positions at Morgan Stanley Asset Management and RCB Trust. Travers is the author of \u003ci\u003eInvestment Manager\u003c\/i\u003e \u003ci\u003eAnalysis: A Comprehensive Guide to Portfolio\u003c\/i\u003e \u003ci\u003eSelection, Monitoring, and Optimization\u003c\/i\u003e, also published by Wiley. He received his BS in finance from St. John's University and his MBA from Fordham University.   \u003c\/p\u003e\u003cp\u003eWith more than 8,000 hedge funds in existence today, the process of identifying, analyzing, allocating, and actively monitoring a short list of funds that meet your specific needs is harder than ever before.\u003c\/p\u003e \u003cp\u003eWhile effective hedge fund analysis can be conducted in various ways and employ a myriad of models and techniques, the basic elements of the process are always the same. It requires answering essential questions that involve all aspects of the hedge fund business, including personnel, underlying investment strategy and risk, competitive advantages or \"edge,\" back office and operations, administration, legal matters, financial issues, marketing, client service, transparency, liquidity, reporting, and more.\u003c\/p\u003e \u003cp\u003eWith over two decades of experience analyzing alternative and traditional investment strategies and managers, author Frank Travers knows what it takes to excel at this difficult endeavor. And now, with \u003ci\u003eHedge Fund Analysis\u003c\/i\u003e, he shares his extensive insights with you.\u003c\/p\u003e \u003cp\u003eDivided into two informative parts, this comprehensive resource provides background information—including the history of hedge funds, a discussion of their pros and cons, and how the asset class fits into diversified institutional portfolios—in Part One, and then moves on to detail a template for hedge fund due diligence in Part Two. To illustrate how the process works, Travers has created a fictional hedge fund organization and takes you through each step of the due diligence process, peeling back the onion one layer at a time so that you'll ultimately discover how to distill the massive amounts of information you're bombarded with and make informed and intelligent investment decisions. Throughout the book, you'll gain valuable insights on:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eData collection and interviewing techniques\u003c\/li\u003e \u003cli\u003ePerformance and strategy analysis\u003c\/li\u003e \u003cli\u003eOperational and risk assessments\u003c\/li\u003e \u003cli\u003eLegal and financial analysis\u003c\/li\u003e \u003cli\u003eQuantitative hedge fund scoring\u003c\/li\u003e \u003cli\u003eAnd much more\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eCreated for the serious financial professional as well as anyone else looking to evaluate and understand how hedge funds work, this no-nonsense guide will put you in a better position to excel in this competitive arena.\u003c\/p\u003e  \u003cp\u003eWith more than 8,000 hedge funds in existence today, the process of identifying, analyzing, allocating, and actively monitoring a short list of funds that meet your specific needs is harder than ever before. \u003c\/p\u003e\u003cp\u003eWhile effective hedge fund analysis can be conducted in various ways and employ a myriad of models and techniques, the basic elements of the process are always the same. It requires answering essential questions that involve all aspects of the hedge fund business, including personnel, underlying investment strategy and risk, competitive advantages or \"edge,\" back office and operations, administration, legal matters, financial issues, marketing, client service, transparency, liquidity, reporting, and more. \u003c\/p\u003e\u003cp\u003eWith over two decades of experience analyzing alternative and traditional investment strategies and managers, author Frank Travers knows what it takes to excel at this difficult endeavor. And now, with \u003ci\u003eHedge Fund Analysis\u003c\/i\u003e, he shares his extensive insights with you. \u003c\/p\u003e\u003cp\u003eDivided into two informative parts, this comprehensive resource provides background information—including the history of hedge funds, a discussion of their pros and cons, and how the asset class fits into diversified institutional portfolios—in Part One, and then moves on to detail a template for hedge fund due diligence in Part Two. To illustrate how the process works, Travers has created a fictional hedge fund organization and takes you through each step of the due diligence process, peeling back the onion one layer at a time so that you'll ultimately discover how to distill the massive amounts of information you're bombarded with and make informed and intelligent investment decisions. Throughout the book, you'll gain valuable insights on: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eData collection and interviewing techniques\u003c\/li\u003e \u003cli\u003ePerformance and strategy analysis\u003c\/li\u003e \u003cli\u003eOperational and risk assessments\u003c\/li\u003e \u003cli\u003eLegal and financial analysis\u003c\/li\u003e \u003cli\u003eQuantitative hedge fund scoring\u003c\/li\u003e \u003cli\u003eAnd much more\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eCreated for the serious financial professional as well as anyone else looking to evaluate and understand how hedge funds work, this no-nonsense guide will put you in a better position to excel in this competitive arena.   \u003c\/p\u003e\u003cp\u003e\"Starting from hedge funds's roots in Shogunate Japan, Frank Travers has written a truly comprehensive book on hedge fund analysis.  Pulling from his years of experience as a hedge fund allocator, Travers offers insights that heretofore could only be learned on the job.  With a colorful writing style and a robust sense of history, Hedge Fund Analysis is as interesting  for the experience hedge fund professional as it is compelling for the novice.  This book is a must read for anyone interested in hedge fund research.\"—\u003cb\u003e\u003ci\u003eBruce MacDonald\u003c\/i\u003e, Chief Investment Officer, Simple Alternatives\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“As the title suggests, it is a no non-sense guide to the exercise of selecting hedge funds, that uses a sober and methodical language – among the few whimsical items are the fictional hedge fund organisation (FCM) and some dry quips.”—\u003cb\u003e\u003ci\u003eOpalesque\u003c\/i\u003e\u003c\/b\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989354856677,"sku":"NP9781118175460","price":95.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118175460.jpg?v=1761783790","url":"https:\/\/k12savings.com\/products\/hedge-fund-analysis-isbn-9781118175460","provider":"K12savings","version":"1.0","type":"link"}